iQSTEL, Inc.'s 288% Increase In February Revenues And 272% YTD Growth Are Two Reasons To Like This Stock; Expects 2021 Sales To Reach $60.5 Million

 

 

March 18, 2021 -- InvestorsHub NewsWire -- via Benzinga -- iQSTEL, Inc. (OTC:IQST) may be trading lower in the past day, but it’s only because many investors don’t know about them. Yes, IQST is a genuine under-the-radar stock that is doing everything right. In fact, its most recent February report showed a more than 288% increase compared to the same period last year, and its YTD revenues are higher by 272% against the start of 2020. 

And while growth is impressive, so is its planned move to the NASDAQ markets through a planned engagement with an investment banking team expected to join with IQST in the near term. By all measures, IQST’s growth is quickening, and for investors with the company since January, their gains have already reached 432%. Not a bad start to the year. But, many investors believe there are much higher returns to come.

Notably, IQST management also has confidence in itself. They pushed revenue guidance to $60.5 million for 2021, up from roughly $44 million at the end of 2020. and they are on track to deliver. As noted, both January and February were strong on the revenues front, adding $4.8M and $4.86M, respectively. The company also wiped out its debt and has no convertible deals in place that can dilute the stock. Better still, this company is growing with deliberate intention.

In less than a decade, iQSTEL has taken a startup Telecommunications venture and turned it into a projected $55 million business. But that’s just one part of the company. IQST has also developed multiple operating subsidiaries that offer services in 13 different countries fielding massive market opportunities. Those units, specializing in Technology, Fintech, Electric Vehicles, and Blockchain offerings are either already generating revenue or in the process of doing so with industry-leading, diversified, proprietary solutions.

Also, the expected uplist to a more senior NASDAQ exchange adds more firepower to its forward-looking valuation. While the OTC is a place to be traded, it’s still the wild-west of valuations. Thus, the move to NASDAQ, along with an investment banking partner, can lift iQSTEL’s recognition within the institutional investment community, both pre and post uplisting. That could earn the company a proper valuation based on revenues and balance sheet strength. iQSTEL plans to engage an investment banking firm by the end of April.

After they engage, these $1 share prices could be a thing of the past. And for a good reason.



 

Video Link: https://www.youtube.com/embed/0Ft-8IMZEVw

An Infrastructure Worth Much More

Investors aren’t just throwing out numbers and hoping for one to stick. iQSTEL has earned the call for higher prices by being deliberate in executing its growth initiatives. Moreover, they are always on the move to create value.

Most recently, IQST said it will launch its Visa Debit Card service through an agreement with Payment Virtual Mobile Solutions, LLC. The company believes that deal can generate revenues over the next five years between $45 million and $128 million. Better still, the revenue is expected to be coupled with an impressive anticipated EBITDA margin of 30% to 40%, which would facilitate a large portion of those revenues to fall toward the bottom line. The partnership will utilize a Prepaid Debit Visa card to open a plethora of personal finance transactions to a specialized and targeted market.

The agreement is strongly biased toward IQST, who, through a new subsidiary, Global Money One, Inc., will own 75% of the venture, with its partner PayVMS owning the other 25%. The collaborative project seizes a niche opportunity to enable international customers to make purchases in stores and online, withdraw cash at ATMs, and receive cashback when using the card to purchase. 

Other important functions within the service allow users to recharge prepaid mobile phone service (domestic and international), send money domestically or internationally, and facilitate the deposit of funds into bank accounts, rewards, and digital gift cards. PDCS customers are also expected to be able to pay bills through a supporting payment gateway. The best news is that IQST makes money on transactions. Thus, with many features offered, additional revenue streams accrue. 

Keep in mind, the $60.5 million in guidance came before that deal was announced. Now, things can get even better.

Is Guidance Of $60.5 Million Conservative?

As noted, revenues are surging, and the two months in the books put IQST in a great position to reach the high end of its $60.5 million 2021 revenue target. But, recent deals can make that number come across as conservative. Two arrangements are in play.

The first is with a billion-dollar global telecommunications provider. Although only a limited amount of details were provided last month, investors should expect updates soon. One thing is safe to bank on, having a partner with deep pockets and a massive international presence can only be helpful. The introductions made and the new agreements established through them can be substantial. The news is out; details are coming.

A second deal is seizing upon a blockchain opportunity. There, IQST expects to launch its new Mobile Number Portability Application (MNPA) Blockchain Platform in April of this year. Thus, both deals are positioning the company to add substantially to its already forecasted revenues. Also, both can be catalysts for a massive expansion of its services.

Other good news is that IQST announced its plans to consolidate its Telecom subsidiaries’ operations under a single brand name. Once completed, IQST can streamline operating efficiencies and create a more seamless marketing program. Of course, the consolidation will maximize more than $55.1 million of the forecasted Telecom Division revenues. And while the Telecom Division is currently providing the bulk of revenues, its subsidiaries are also benefitting from strong international traction. 

In fact, to reach the $60.5 million target, IQST is leaning on its operating subsidiaries to deliver upwards of $5.4 million in projected revenues. More specifically, the company will capitalize on existing and new market opportunities from its high-margin business units, including its Technology Division (IoT and Batteries for EV), Fintech Division (Visa Debit Card), and Blockchain Division (MNPA). Each division is already expanding its global footprint and is on point by offering innovative sector-specific product and service solutions.

And it’s those units that could help IQST surge through its current revenue target. The best news is that every division is operational and able to contribute to the common cause.

Pushing Boundaries With Innovation

An important note is that despite IQST’s small-cap price, the company provides services equal to or better than even some global conglomerates can claim. The deals mentioned above substantiate that claim. Now, investors have more to evaluate with IQST recently announcing deals that leverage their expertise in the Telecommunications, Electric Vehicle (EV), Liquid Fuel Distribution, Chemical, and Financial Services Industries. That diversity can be a critical value driver. 

As if that was not enough, IQST announced near-term initiatives to increase shareholder value through OmniChannel Marketing, IoT Smart Electric Vehicle Platform, iQ Batteries for Electric Vehicles, and its IoT Smart Gas and IoT Smart Tank Platform. Notably, its SmartGas® solution has been selected as the winner of the “Smart Appliance Product of the Year” award in the 5th annual IoT Breakthrough Awards program conducted by IoT Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies, and products in the global Internet-of-Things (IoT) market today. There, IQST competed with contributions from some of the world’s leading tech companies, including Apple (AAPL) and Qualcomm (QCOM). And IQST came out a winner.

The opportunity at IQST is straight-forward. Revenues are surging, they are executing on pace to achieve a record year of sales in 2021, and remain on the hunt for accretive acquisition and merger opportunities. Thus, at $1.01 per share on Tuesday, the OTC markets are taking away value that the company has earned. But, that is likely to soon change, especially working toward an imminent NASDAQ uplist.

Although approvals may be slower as the regulatory agencies work through pandemic-caused backlogs, IQST investors feel pretty confident of the outcome. IQST has the revenues, the balance sheet, and the capital structure to earn the listing. Moreover, once an investment banking partner joins the mix, the listing may come sooner rather than later. After all, that’s their job. 

For investors considering IQST at these levels, here’s something to consider. As shown in February, IQST can rally hard to the upside quickly. In fact, investors ran the stock 41% higher to an intraday price of $2.00 a share. Profit takers took some gains in a pretty poor month for micro-cap stocks. Thus, the retracement was not concerning as a company-specific event. However, the excellent news is that IQST is a stronger company today than they were in February. Therefore, the next surge can be even better.

And, if investors set themselves a modest price target of $2.00 in return to its 52-week highs, that could return roughly 97%. That’s a great trade, but the boards’ chatter suggests selling at that level would be very shortsighted.

 

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Source - https://www.benzinga.com/pressreleases/21/03/ab20232540/iqstel-inc-s-288-increase-in-february-revenues-and-272-ytd-growth-are-two-reasons-to-like-this-st

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SOURCE: Benzinga

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